CALID Arm Growth to Support Bruker Shares Amid Macro Issues

Bruker’s BRKR strong growth reflects its fundamental commitment to innovate high-value solutions and its ongoing portfolio transformation. Yet, the company’s operations face the wrath of excessive currency exposure and general macroeconomic headwinds. The stock carries a Zacks Rank #3 (Hold).Factors Driving Bruker's GrowthThe CALID segment has been gaining from strong demand for differentiated instruments, particularly in life science mass spectrometry proteomics solutions and optics spectroscopy and microscopy instruments. In 2024, the company unveiled the flagship timsTOF Ultra 2, featuring significantly enhanced sensitivity for single-cell proteomics and immunopeptidomics. It offers new possibilities in subcellular proteomics. Bruker also introduced the neofleX MALDI-TOF/TOF multiomic Mass Spec Imaging Benchtop system, which is set to enable multiomic colocalization on the tissue of proteins, lipids, metabolites and glycosylation.Earlier this year, Bruker augmented its molecular microscopy portfolio by acquiring Nanophoton, adding a broad range of state-of-the-art Raman microscopy systems. Furthermore, the acquisition of Tornado Spectral Systems in January aims to significantly expand Bruker’s biopharma PAT (Process Analytical Technology) product portfolio range.Within the BSI Nano segment, Bruker has enhanced its materials science research portfolio with the acquisition of Nion by adding a high-end STEM (scanning transmission electron microscope) technology. It also completed the acquisition of Phasefocus Holdings Limited, the developer of a novel optical microscope called Livecyte for label-free imaging. In May 2024, the company purchased NanoString Technologies’ assets, bringing innovative platforms and solutions for spatial transcriptomics and gene expression analysis into the NANO segment.Further, Bruker is strategically progressing with its BioSpin products that have specific applications in structural proteomics, drug discovery, research, and food and materials science fields, providing customers with the ability to ascertain the structure, dynamics, and function of specific molecules, such as proteins, as well as characterize and determine the composition of mixtures. The company’s SciY platform, which offers a comprehensive, vendor-agnostic suite of software and automation solutions for life science industry customers, primarily in the biopharma sector, has been seeing greater adoption.  In addition, the division also benefits from enabling access to its high-performance GHz (gigahertz) NMR (Nuclear Magnetic Resonance) technology.Bruker Corporation Price Bruker Corporation price | Bruker Corporation QuoteConcerning Factors for BRKRPresent global economic challenges and uncertainties have made it harder for Bruker to manage operations and predict financial outcomes. Geopolitical conditions, including conflicts in Russia and Ukraine, Israel, Palestine and surrounding areas, tensions between the United States and China, potential energy shortages in Europe and increased energy and transportation costs are impacting the company’s operational results. In addition, supply-chain risks associated with inflation, the threat of recession, currency volatility, and the worldwide shortage of semiconductor chips, components and raw materials such as copper also persist. All these issues are leading to higher costs and expenditures for the company and putting pressure on profitability.In the third quarter, Bruker’s cost of revenues increased by 23.8% compared with the same period in 2023. Selling, general and administrative (SG&A) expenses surged 30.2%. Bruker generates a substantial portion of its revenues from international markets, primarily in Germany and other countries in the European Union, Switzerland and Japan.  As a result, currency fluctuations continue to result in foreign currency transaction losses at the company. In addition, currency fluctuations could cause the price of Bruker’s products to be less competitive than its principal competitors' offerings.Moreover, Bruker faces substantial competition in a consolidating industry and expects competition in all its markets to increase further. Bruker BioSpin competes with companies that offer magnetic resonance spectrometers, mainly JEOL and Oxford Instruments. In the field of preclinical imaging, Bruker BioSpin faces competitive threats from Perkin Elmer, Mediso, Trifoil, MR Solutions, RS2D, Visualsonics (Fuji Film) and others.The stock has lost 9.4% in the past six months compared with the industry’s 8.4% fall. With the company currently focusing on core business expansion through innovations, new offerings and expansion into new markets, we expect the stock to regain momentum in the coming days.Key PicksSome better-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Penumbra PEN and Haemonetics HAE. While Phibro Animal Health sports a Zacks Rank #1 (Strong Buy) at present, Penumbra and Haemonetics carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Phibro Animal Health’s shares have risen 86.2% in the past year. Estimates for the company’s fiscal 2025 earnings per share have remained constant at $1.62 in the past 30 days. PAHC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.47%. In the last reported quarter, it posted an earnings surprise of 52.17%.Estimates for Penumbra’s 2024 earnings per share have remained constant at $2.81 in the past 30 days. Shares of the company have risen 4.3% in the past year compared with the industry’s 7.2% rise. PEN’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 10.54%. In the last reported quarter, it delivered an earnings surprise of 23.19%.Estimates for Haemonetics’ fiscal 2025 earnings per share have remained constant at $4.59 in the past 30 days. Shares of the company have declined 5.9% in the past year against the industry’s growth of 4.7%. HAE’s earnings surpassed estimates in three of the trailing four quarters and matched in one, the average surprise being 2.82%. In the last reported quarter, it delivered an earnings surprise of 2.75%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Haemonetics Corporation (HAE): Free Stock Analysis Report Bruker Corporation (BRKR): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report Penumbra, Inc. (PEN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks